Publications

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2007
Working Paper

Proprietary vs. Open Two-Sided Platforms and Social Efficiency

By: Andrei Hagiu

This paper identifies a fundamental economic welfare tradeoff between two-sided open platforms and two-sided proprietary (closed) platforms connecting consumers and producers. Proprietary platforms create two-sided deadweight losses through monopoly pricing but at the... View Details

Keywords: Two-Sided Markets; Platforms; Indirect Network Effects; Product Variety; Social Efficiency; Two-Sided Platforms; Network Effects; Welfare or Wellbeing

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September 2010 (Revised August 2011)
Background Note

Pricing, Profits, and Customer Value

By: Frank V. Cespedes, Benson P. Shapiro and Elliot B. Ross

This note discusses how some firms (start-ups and established companies) maximize customer value and profits via their pricing processes. It is aimed at companies that compete on the basis of performance initiatives rather than absolute cost advantages and low price.... View Details

Keywords: Customer Focus and Relationships; Customer Value and Value Chain; Cost; Price; Profit; Performance Effectiveness; Sales; Competitive Strategy

14 Jul 2006
News

The Case for Consumer-Driven Medicaid

16 Jan 2013
News

Warby Parker tries to re-focus eyeglass industry

28 May 2009
Working Paper Summaries

Monopolistic Competition Between Differentiated Products With Demand For More Than One Variety

Keywords: by Andrei Hagiu; Video Game; Web Services

April 2021 (Revised July 2021)
Case

StockX: The Stock Market of Things (Abridged)

By: Chiara Farronato, John J. Horton, Annelena Lobb and Julia Kelley

Founded in 2015 by Dan Gilbert, Josh Luber, and Greg Schwartz, StockX was an online platform where users could buy and sell unworn luxury and limited-edition sneakers. Sneaker resale prices often fluctuated over time based on supply and demand, creating a robust... View Details

March 1989 (Revised April 1998)
Case

Marriott Corporation: The Cost of Capital (Abridged)

By: Richard S. Ruback

Gives students the opportunity to explore how a company uses the Capital Asset Pricing Model (CAPM) to compute the cost of capital for each of its divisions. The use of Weighted Average Cost of Capital (WACC) formula and the mechanics of applying it are stressed. View Details

Keywords: Cost of Capital; Mathematical Methods

16 Jul 2008
Op-Ed

What Should Employers Do about Health Care?

employers offer fitness programs and healthy menu choices in company cafeterias, sometimes at lower prices than the less healthy alternatives. To promote screening and management of chronic conditions, employers are moving to on-site... View Details

Keywords: by Michael E. Porter, Elizabeth O. Teisberg & Scott Wallace; Health

17 Jan 2008
Working Paper Summaries

Competition in Modular Clusters

Keywords: by Carliss Y. Baldwin & C. Jason Woodard; Consulting; Communications; Telecommunications; Pharmaceutical

November 2007
Background Note

Asset Allocation I

By: Joshua D. Coval, Erik Stafford, Rodrigo Osmo, John Jernigan, Zack Page and Paulo Passoni

The goal of these simulations is to understand the mathematics of mean-variance optimization and the equilibrium pricing of risk if all investors use this rule with common information sets. Simulation A focuses on five to 10 years of monthly sector returns that are... View Details

Keywords: Asset Pricing; Capital; Investment Return; Risk Management; Mathematical Methods

December 1998 (Revised June 1999)
Case

STT Aerospace

By: Richard G. Hamermesh and Jeremy Dann

Experienced entrepreneur Charles Damon conducted a "roll-up" from 1987-1994 within the commercial airliner interior products industry. Damon's company, STT Aerospace, took advantage of an industry-wide recession in the early 1990s by buying when asset prices were low.... View Details

Keywords: Retention; Business Strategy; Selection and Staffing; Entrepreneurship; Financial Crisis; Growth and Development Strategy; Compensation and Benefits; Employee Stock Ownership Plan; Acquisition; Product Development; Aerospace Industry

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Kris Ferreira is the Edgerley Family Associate Professor of Business Administration in the Technology and Operations Management (TOM) Unit. She teaches the Supply Chain Management course in the MBA elective curriculum and analytics in numerous Executive Education... View Details

Keywords: retailing

07 Apr 2015
News

Big Companies Pay Later, Squeezing Their Suppliers

08 Feb 2019
News

Why didn’t the Panera Cares social experiment pay off?

April 1996 (Revised May 1997)
Case

Netscape's Initial Public Offering

By: W. Carl Kester and Kendall Backstrand

In August 1995, Netscape's board of directors was confronted with a decision about what price to offer the company's shares in its initial public offering (IPO). Preliminary demand for shares was high, but the company had not generated any positive earnings at the time... View Details

Keywords: Initial Public Offering; Information Technology; Problems and Challenges; Valuation; Governing and Advisory Boards; Information Technology Industry

May 2014
Article

Bias in Reduced-form Estimates of Pass-through

By: Alexander MacKay, Nathan H. Miller, Marc Remer and Gloria Sheu

We show that, in general, consistent estimates of cost pass-through are not obtained from reduced-form regressions of price on cost. We derive a formal approximation for the bias that arises even under standard orthogonality conditions. We provide guidance on the... View Details

Keywords: Pass-through; Reduced-form Aggression; Bias

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26 Jan 2022
News

Fed Plays Wait and See with Monetary Policy

10 Jun 2020
News

Coronavirus May Have Huge Impact on Property Markets

March 2002 (Revised June 2003)
Case

MAC Development Corporation

By: Richard G. Hamermesh and Colleen McCaffrey

Deals with MAC Development's efforts to develop a 41-acre site near Chicago. Reviews two years of efforts and highlights the remaining issues of: 1) gaining town approval for development and tax reductions, 2) meeting the bank's debt covenants, including finding a... View Details

Keywords: Risk Management; Taxation; Financial Instruments; Borrowing and Debt; Asset Pricing; Construction Industry; Chicago